1. What is PPF (Public Provident Fund)?

The Public Provident Fund (PPF) is a long-term savings scheme backed by the Indian government. It offers attractive interest rates and tax benefits under Section 80C of the Income Tax Act. The maturity period is 15 years, extendable in blocks of 5 years.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( AnnualDeposit \) — Yearly investment amount (INR)
• \( Rate \) — Annual interest rate (as decimal)
• 20 — Number of years (standard PPF period plus extension)

Explanation: The formula accounts for compound interest on yearly deposits over the 20-year period.

3. Importance of PPF Calculation

Details: Calculating PPF maturity helps in financial planning, understanding the power of compounding, and comparing with other investment options.

4. Using the Calculator

Tips: Enter annual deposit amount in INR and current PPF interest rate in percentage. The calculator assumes consistent annual deposits for 20 years.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% per annum (compounded yearly), but this changes quarterly.

Q2: What is the minimum and maximum deposit amount?
A: Minimum ₹500 and maximum ₹1.5 lakh per financial year.

Q3: Can I make partial withdrawals?
A: Yes, partial withdrawals are allowed from the 7th financial year onward under certain conditions.

Q4: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q5: Can I extend my PPF account beyond 15 years?
A: Yes, you can extend in blocks of 5 years with or without further contributions.